It just sets the encoding that will be used when saving next. If you want to reopen the current file with a different encoding, you can use the reopen command - see Default/Main.sublime-menu for an example.

So it's possible to call reopen from API ? Afaik it's not exposed to public.

??? All he added was a dot by the file...how can that be ugly? I find it very useful. Before I had a hard time telling what wasn't saved, now I can easily tell. I think it looks fine, and more importantly, useful.